hey, did you know that honey nut cheerios is... oh you too! ooh, hey america's favorite cereal is... honey nut cheerios ok then off to iceland! i'm jim cramer and welcome to my world. >> you need to get in the game. >> firms are going to go out of business, and he's nuts. they're nuts. they know nothing. >> i always like to say there's a bull market somewhere. >> "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you a little money. my job isn't just to entertain but i'm trying to teach you. call me at 1-800-743-cnbc. mark twain famously said there are three kinds of lies. lies, damned lies and statistics. right now the market is reacting to the third kind of untruth

with statistics like today's drop in retail sales. a number that helped send averages lower with the dow sinking 50 points and the nasdaq sliding .40%. here's the problem. if retail sales are that horrendous, if the consumer is so tight-fisted then how the heck can target, walmart, and costco be hitting their 52-week highs as they have over multiple days in the last week? can aggregate retail sales be that terrible when you have robust numbers at these stores? who's more likely to be lying with statistics? the commerce department or a chain like target where the controls are superb and the numbers are not subject to interpretation? who's giving you the real skinny? a government department that may be using probably not the technology near what the private sector uses to compile data or a store like walmart where 140 million people shop each week? does costco have a better handle

on retail sales than the department of commerce given they have the sales per square footage of every store in the head while the commerce department doesn't have a permanent secretary at the helm? how about retail sales of autos. in the month of june chrysler sold 20% more cars than last year. more than any year since 2007. gm's numbers are the best since 2008. ford sales were up only 7%. the numbers told us more about retail auto sales than the miserable commerce number but chrysler doesn't trade as an individual company. none of these numbers compare to reports from the banks since earnings season began. today we got citigroup's numbers. they were certainly better than expected. the terrific portion of earnings coming from international.

notably transactions citi processes overseas, not a lot of risk there. friday we got numbers from jpmorgan and wells fargo. they really do call the commerce department statistics into question and do seem to go with the mark twain thesis. the scandal of the whale that swallowed jamie, as in jamie dimon, dominated the report from jpmorgan. i would rather focus on the credit card and a small business and medium businesses were. the amazing part came from the commentary about the strength jpmorgan saw here during the month of june. i thought june was terrible. retail spending and lending were the bright spots and the numbers were even more spectacular when you consider how weak investment banking and m & a were. jpmorgan saw strong sales in the areas that would most impact consumer spending. the most remarkable quarter came from wells fargo. now the largest and most aggressive lender in the united states. it's got the pulse of the consumer like no other single most important sales category out there.

that's the sale of homes. do you know wells fargo has more than 30% of the mortgage market? that's unheard of in a company where the limit for one bank's tentacles in housing. we never let a bank get this powerful. the financial crisis allowed us to look the other way and wells to take a huge share. there was no choice but to agree to the consolidation. there are amazing statistics from wells fargo. they paint a picture of the economic health that's totally at odds with the stats from the government. consider these pieces of data that smack more of facts to me than of damned lies. first wells fargo's mortgage business was up 90% from a year ago. up 11% from the quarter. very hard to get double digit link. you can only imagine what they can do to retail sales further down the line. each home has to be furnished and fixed to the satisfaction of the new buyer.

second, the refinance business was up over $19 billion. 43% from the first quarter, which the company said indicated continued strength in the overall housing market where we see increases in sales, pricing and markets throughout the country. even some of the hardest hit areas during the slow down. gigantic for retail spending. wells is seeing an astounding 31% increase in commercial loan growth through portfolio acquisitions and credit card penetration. the increase has not been accompanied by a rise in defaults, as the charge-off ratio declined to 1.15%. lowest since 2007. nonperforming assets, the key metric for the health of the borrower down 11% from a year ago. that doesn't sound like a weak consumer to me, unwilling to open the wallet. fifth, mortgage volumes have been much stronger than anyone expected a year ago or three months ago. the mortgage pipeline is more than double where it was a year ago.

that means more record revenues ahead. when the largest bank for home lending that services trillions of dollars in residential mortgages says the housing boom is back and it is a tail wind not a head wind, i find it as difficult to be as negative as the commerce department stats would indicate. i'm not saying that means the hiring statistics are wrong but it's not a stretch to call them into question consider the way they are collected and only look at on the books employment. when you combine strong retail sales in store, housing and auto you get a picture of strength. it's easy to think everything is going wrong. the president can't talk positive about the economy because that's unsensitive to the base suffering high unemployment. the republican has to portray the economy as awful and blame president obama for the weakness. no one on either side has an incentive to say things are

better. i have an incentive to look at the facts and tell you what i think. the bottom line. when we get a retail sales statistic like we got today from commerce showing a terrible decline, one that would normally signal recession is around the corner, wouldn't you expect the stock market to crater? not like it did today, but crater. especially after friday's positive day, but it didn't. i think that's the story of the day. i think that's because the market takes the cue from more than just disappointing government statistics especially when those stats may be worth no more than the lies or damned lies. the market takes a cue from what the companies are saying. you should, too. they are saying things in this country might be better than you think. you know what? that's a lot different from what the government is saying. jeff in pennsylvania. jeff. >> caller: with the announcement of marissa mayer as the new yahoo! ceo what does it mean for the future of the company? >> it was a shocker. i thought ross levinson, the

interim, had the job. i don't like to opine when i don't know. mayer has a terrific background. my friend herb greenberg was here. google is a great company. you get someone high level and they do a good job. i just don't know enough. rocky in ohio, please. rocky. >> caller: hi, jim. thanks for taking my call. i appreciate everything you do for the viewers. >> thank you. >> caller: i'm noticing gold is down today. i'm kind of big into the miners. i had a question about nova gold resources. >> right. >> caller: ticker ng. do you think it is a good buy? >> no. i don't want to single out nova gold. gold corp. just reported horrible numbers. owning the miners is a recipe for self-punishment.

i would rather have you in gld and i believe in it particularly below 150. there i would be very aggressive. ron in michigan. ron. >> caller: mr. cramer, how you doing? >> real good, how about you? >> caller: good. i just had a question for you. i know you said that newspapers weren't for you. gci gannet. how do you feel about the digital marketing services demand and it's making a strong impact on broadcasting as well with the u.s. olympics coming up? >> that was an impressive corner and larry kramer is one of the best executives in the business. i think they are doing well. i don't want to recommend a newspaper stock. they are too speculative for me but i was impressed with the corner. no doubt about it. it was good to go. the market chose to listen to the companies today, not to those sweet little lies. commerce department does its best but wouldn't the market

have been down huge if that was really the way numbers are shaking out? yeah, it would have been. it wasn't. "mad money" will be back. >> announcer: coming up, secret sauce? this household name has made a home in your pantry, but its shares have been frozen in 2012. could a break-up unlock its hidden value and bring good things to those who wait? later, fight club. grab a towel. cramer is getting pumped up for his head to head battle between two gym stocks. stick around to find out which one could give you more than a six-pack. all coming up on "mad money." >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc.

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in this difficult

environment more and more big companies are realizing they have at least one quick and easy way to unlock value for their shareholders. breaking up. it doesn't have to be badly. lately, time and again, we have seen how a well thought out break-up or spin-off can send a stock soaring higher. the idea that break-ups bring up value is a theme on "mad money" given the slow growth of the world's economy. when i see an iconic american brand that could benefit from a little break-up action, i can't keep my mouth shut about it. take heinz. a quintessential household name that sells everything from ketchup to soup, sauces, beets, baby food, beans, and frozen foods as well. i'm a big fan of heinz. well run company. juicy yield. a safe defensive business that can thrive even in a recession. however, heinz has a problem. it's preventing the stock from

achieving the higher valuation that it deserves. that may be a lot to swallow given the fact that heinz is a half point off its highs at these levels, but it's true. you should strive to be better than a half point off your high. not just the state of running issues in all the packaged food companies are dealing with. higher commodity costs from corn considering the lousy harvest, worst in years and increased competition. something you have heard about from general mills, campbell's soup and kellogg. no, i'm talking about a very specific problem. back on may 24th at the company's analyst day, heinz lowered the long-term guidance based on difficulties in the north american business. more specifically in their frozen food business. you culprit, you. [ water rushing ] the frozen food business

accounts for 15% of total sales but the weakness has been holding back the entire company. threatened to knock over the heinz-a-mid. the frozen portfolio has been a weak spot in what's otherwise solid results. the whole frozen category has been struggling for years but has taken a turn for the worse in the last 12 months. according to the ceo, frozen meals are the most cyclical of the major food categories we compete in. strong in good times, weak in recessionary times. frozen meals are actually hostage to the health of the economy. that's the last thing you want in a food company. the entire reason to own a stock like heinz is for consistency. we should be doing as well in good times and bad. people don't stop eating. i had a burger last night at the prestige diner and of course i put heinz on it. what do you think i am -- a loser?

there's also been some execution issues. for example, heinz put through a 9% increase in ore-ida frozen potatoes. the company also got an ill advised frozen meal venture in t.g.i. fridays. two thumbs up on that one. heinz got out of that business earlier this year when it didn't pan out. heinz is a terrific company with one lousy division. what should they do with it? the solution is obvious. time for heinz to spin off its frozen division as a separate company or find someone else to sell it to. the company hasn't said anything to suggest a spin-off but last week barclays had a smart piece of research last week entitled can heinz defrost a better quarter? that suggested this move. it laid out the evidence for why a break-up isn't that far-fetched.

while management hasn't said anything about spinning off the frozen division they put the kibosh on the tgi friday's frozen meal line five months after launching it. they had the guts to take the hard choice. of the 11 plant closures more than half are in the frozen arena. the ceo said, that's just the beginning. i mean, i think the frozen category is a challenge category. seems like management may be thinking about giving this division the boot. heinz announced it is replacing the head of the north american business. and the ceo is willing to make large portfolio changes before with the sale of some revered brands, kibbles & bits, college inn broth. the entire u.s. baby food and private label soup division to del monte. a bigger percentage of frozen foods is just 15% of heinz's sales.

the idea behind the sale, it was all about unlocking value for shareholders by becoming a more focused, more predictable and faster growing business. the exact same logic applies to spinning off the frozen division. how much value could this potential frozen break-up unlock? for starters, by spinning off the frozen division it would be easier for heinz to hit the 4% to 5% organic revenue growth target with the rest of the business. heinz could focus on faster growing categories and on rapidly expanding emerging markets. it would be even bigger, 30% of sales if they dumped that frozen foods division. plus, unlike the rest of heinz's brands the frozen business is less likely to be a big international growth vehicle. by getting rid of the one disappointing division heinz would almost certainly earn a higher price to earnings multiple. if the spinoff allowed them to

go from 14.5 times earnings to 15. times earnings, put it in line with nestle and if they used the proceeds to buy back stock, the remaining company would be worth no less than where it is trading now despite selling off a division responsible for 15% of sales and an even higher percentage of its profits. yeah, they have a chance here to raise the multiple. you have seen how profitable breakups can be. kraft announced it would split up last august. the s&p 500 is up 7% over the same period. heinz could do the same thing. here's the bottom line. if heinz would spin off the loser frozen food division like barclays and i suggest, the remaining company would be no longer tainted by failure and would receive a higher price to earnings multiple. it's a no-brainer and heinz is paying for you to wait for the spin-off with its juicy yield. i think the ceo won't tolerate the disappointment of one division tarnishing the growth

of the rest of the enterprise. if you own heinz, hold on. the anticipation of the spin-off should be making you wait. otherwise what will it do to the ketchup-a-mid? let's see. wow, pretty solid business without the frozen foods. after the break i'll try to make you even more money. >> announcer: coming up, fight club. grab a towel. cramer is getting pumped up for his head to head battle between two gym stocks. stick around and find out which one could give you more than a six-pack. [ man ] ever year, sophia and i

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♪ let's get physical last friday aaron in missouri called to ask about lifetime fitness ltm versus town sports, symbol club for you home gamers. a great question with summer in full gear. i realized i had to spend more time in answering. tonight we are having a sports club throw down. that's right. a full fitness war between cramer fave lifetime fitness and the challenger town sports. we have liked all things fitness here on "mad money" for a while. why?

because they are anti-obesity plays and fighting obesity is one of the biggest secular trends of our time. in the year of expanding waistlines and rising healthcare costs, taking an hour to go to the gym seems more like a necessity if you want to stay thin and healthy. how do you think a 67-year-old man like myself manages to stay in such good shape? yep. at least some americans are finally getting off their collective butts and doing some darned exercise. that's good news for town sports and lifetime fitness. there can only be one winner. that's the beyond thunderdome rule for good investing. only one stock leaves when two enter. what's the best gym stock? lifetime fitness and town sports are both regional chains with lots of room to expand in a highly fragmented industry. on the other hand, these two plays are different animals. so different, frankly, it's not a fair fight. you see, this isn't just dueling sports clubs. we have a battle between ultra

high end lifetime fitness with a day care and fancy classes versus town sports facilities like new york sports club. they don't offer much other than extra machines to keep the workout moving. it's like comparing apples and better apples. lifetime is superior by far with a superior state of mind and attitude a la steven segal in "hard to kill." why is lifetime fitness so much better? 700,000 members in 22 states and one canadian province and they are integrating centers into the rest of the business. town sports has more locations, 160 sports clubs from washington, d.c. up to boston. if you live in the east you have seen them. in new york they are new york sports club. philadelphia sports club, boston sports club. you get the picture. despite that, town sports has fewer members, 533,000.

more important, these two companies have different business models. lifetime fitness gets 65% of its revenues from membership fees. 30% from various in center services like personal training or food. town sports relies on membership dues for 78% of revenues, a much higher level. town sports sells annual memberships while lifetime uses a monthly model. we prefer town sports because year-long memberships give the company greater visibility. town sports has to do with upstart gyms and high end sports clubs like equinox but it goes against lifetime in some areas. they are more vulnerable to losing people to cheaper priced gyms. lifetime fitness, different. you see it in stark contrast to the rest of the industry. lifetime doesn't compete for members based on price. the company is selling a premium experience targeting a wealthier demographic. people for whom price matters a lot less than the quality of the overall experience.

by focusing on topnotch amenities they have higher income customers giving them a tremendous pricing power. the average household income of lifetime membership based $70,000 to $80,000. now it's over $100,000 a year. lifetime fitness doesn't just sell you a membership and forget about you. the model is about getting people, like my daughter -- a very satisfied customer -- there and having them spend money on things like personal training sessions and products sold through their internal spas and cafes. you go into lifetime fitness center and they have yoga and pilates to swimming pools, water slides, day care for the kids. that's a smart move. the day care is packed there. town sports isn't in the same league as these guys. no wonder lifetime has faster revenue growth. no surprise they have faster same store sales. that's a better indicator with a lot of stores you can make the

regular sales numbers inflated. lifetime fitness is expanding more rapidly with more room to group. lifetime's footprint reaches 27 of the top 60 markets. the company has 105 centers up from just 90 a year ago. they think they can grow it to 200. lifetime fitness has a ton of room to go. in the northeast they have two centers in new jersey and one in new york. can you imagine? town sports is growing much more slowly. last year they opened two new clubs. they are targeting one new location for 2012. that doesn't satisfy wall street's craving for growth. they haven't been expanding because of lack of profitability and restrictions. high debt load. now they plan to accelerate expansion with three to six new locations next year. six to eight new openings in 2014. still a slower pace than lifetime fitness. lifetime fitness is also cheaper stock.

town sports sells for 15.6 times earnings, a higher multiple with a slower 10% growth rate. the bottom line as far as i'm concerned, the fitness wars are no contest. lifetime fitness is a superior business model, cheaper stock. but in the end i would not necessarily buy either company right here. wrong place, wrong time to own a fitness center stock in this market. how about mark in florida? mark. >> caller: hi, jim. a boca boo-yah to you. >> nice boca boo-yah back at you. >> caller: long time listener, first time caller. >> good deal. >> caller: hain celestial. the market has become a little richer. i wonder what you feel about it. i love what's happening. two major customers advancing

whole foods and the other guy adding stores. you know, i understand that the regular supermarkets are putting in, you know, healthier products. so that should have a good effect on hain. >> i totally agree. i think they are doing well. the stock has been a massive outperformer. it's up very big. only a couple from the 52-week high. listen, the stock periodically comes down off a big downdraft in the market. that's when to pull the trigger. not just come in and scoop it up now. lifetime fitness is sexy and they know it. it's got a superior business model with superior growth and it's cheaper when compared to town sports. if you couldn't tell from my outfit, i also do an occasional bit of workout. [ grunting ] stay with cramer! >> announcer: coming up, forgive and forget? investors are continuing to feel the pain from facebook's botched ipo. will they soon put it in the

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>> announcer: lightning round is sponsored by td ameritrade. [ bell ringing ] >> it is time. it is time for the lightning round. i take your calls. you say the name of the stock. i don't know the calls or the name of the stock ahead of time. i tell you whether to buy or sell. when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round. starting with luke in ohio. luke. >> caller: a big chicago bear boo-yah! >> i'll take that. what's up? >> caller: i want coinstar. cstr. >> oh, boy. too controversial. there are always guys shooting each other. this is a true battleground stock. i have enough problems with the ones that are pure. mike in new york. mike. >> caller: boo-yah, jim, from the great state of texas. >> wow, texas, new york, i like that. what's going on? >> caller: my stock is threshold pharmaceuticals, thld.

>> this stock had a monster move. you know, this is like that targeting technology. biotechnology i like. i'm not backing away provided you regard it as a speculative play and not health care. how about jamie in maryland? jamie. >> a beautiful thank you boo-yah to you. >> nice. what's up? >> caller: national cash register company. >> i cannot believe they are doing as well as it is. national crash is the old nickname. it has finally turned. i believe in retail. retail is good. my hat is off to bill nudie. he did it right. took a little time but you have figured it out. nick in wisconsin. >> caller: hey, jim. how are you? >> all right. how about you, nick? >> caller: first of all, a wisconsin b-b-boo-yah. >> we always want a stuttering wisconsin boo-yah. >> caller: my question of the day is should i buy the etf gld? >> yes.

i do like it. [ buy, buy, buy ] i believe in the end europe has to print money and that's the trigger to buy gld. get in ahead of it. evelyn in florida. >> caller: boo-yah appreciation from the old folks in florida. >> you sound young to me. what's going on? >> caller: two parts. in the middle '80s what do you do with a $50,000 inheritance and what do you think of agco. >> in your mid 80s, believe it or not we consider you have multiple years to invest. we'll recommend att and verizon. maybe some master limited partnerships. agco is too risky for me. you have to go with seed or fertilizer in ag. those are red hot. chris in west virginia. >> caller: yes. >> go ahead. >> caller: yes? >> you're up, chris. >> caller: i'm on? >> yes. >> caller: boo-yah from wild

wonderful west virginia. >> oh, man, i like it. what's up? >> caller: i want information about wwe -- >> no, you don't. [ sell, sell, sell ] this isn't an episode of work-a-holics. debbie in florida, please. >> caller: hi, jim! hek! i'm in it for the long term. >> long term, embrace it. remember this is nat gas and oil. you get hammered every day. in that case you want to own it. my friend who does my accounting work for the show and for thestreet.com says everything looks good over the long term and i'll go with him. jim in wyoming. >> caller: hey, yippee-yi-yo boo-yah, jim from the back seat of a ford fairmont. >> mine was nasty. what's up?

>> caller: sprint. i rode it up. >> i got the chart of the sprint preferred. it's now at par. i screamed last week on "squawk on the street" something is going on at sprint. either a turn in the business or a takeover. both are real good. do not sell it. [ buy, buy, buy ] let's go to kevin in the illini. >> caller: boo-yah. free port mcmoran. >> when this gets to 4% yield that's where it will bottom. that's what i felt about nucor, too. under 30, and then it's safe to buy. that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td

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after the facebook debacle you have to be crazy to get into another ipo, right? not so fast. this week you have not one, not two or three but four new deals. i actually believe the facebook fiasco could work in your favor. the investment bankers recognize that in the wake of facebook people are mad, disgusted, totally turned off at the idea of owning any stock let alone getting shafted with another

loser ipo. when the level of popular hatred toward stocks reaches a certain level brokers try to entice you back into the market by engineering the pricing of new ipos for a nice first day pop. they tell you that you aren't allowed to take the money and run. you have to hold onto every deal. you can sell if you like. it's a free country. there is nothing that says you have to hang onto every share. last week i highlighted palo alto networks and kayak.com. they are supposed to come public this thursday. i told you to get shares in the deal and try to do selling when the companies become public. these are ipo trades, not necessarily investments. what about the other two companies coming public this week? where do they stand in this? first we get fender. this is, of course, the iconic american company that's the world's leading guitar brand. fender. then there is five below.

an up and coming dollar discount store focused on teen shoppers. i will rank the four deals. first i will remind you the best of the stocks is only a trade unless it doesn't go so high there is upside down. a lot of times that steals the upside forever. they try to realize profits. if you stick around and the gains evaporate, don't blame cramer. so many deals look great in the first days and weeks and take your breath away with awful performance. ask holders of groupon or zynga or groupon and don't forget facebook which dropped two dollars today to be ten points below where the deal came. that was ugly. unbelievable. now, the ipo i'm most excited about is this palo alto networks. the cyber security plan. i don't know if you watched david faber's excellent presentation on the china cyber security issue. it's a big issue. this will give you a quick pop. coming in second is five below.

dollar stores are on fire right now. this one in particular has room to expand all over the country. it's a philadelphia based chain of 192 kid oriented dollar stores founded in 2003 by the former owners of zany brainy which was beloved by children all over the country. good blood lines. cheap sports gear, snacks, party goods, clothing and middle school accessories with nothing costing more than $5. oh, man, this place is a blast to shop at. i love my five below on route 22 in springfield, new jersey. i first thought it was a place to get extreme camping gear for arctic-like weather. five below. turns out to be a higher price point than dollars general, tree or family. think of it as inflation adjusted dollar stores. five below has room to expand from less than 200 stores now to 2,000 all over the country.

that's perfectly reasonable given that dollar general has 10,000 stores. imagine plans to open 50 new locations this year. 60 more in 2014. that's incredibly rapid growth for a small chain. that's what makes growth oriented managers salivate and the company's same store sales up 10.4% in 13 weeks ending april 28. based on the mid-point five below should trade at two times sales. dollar general is growing much more slowly than five below. i think this is the kind of deliberately under priced ipo that can give you a pop. this story has so much power to it. i'm willing to countenance holding onto this because it fits the profile of what the market is looking for like dunkin donuts has for those looking for a regional to national coffee place since it

came public. consider this the five below alternative to dunkin donuts. okay. you can't get shares from palo alto, my third choice is kayak. that's the online travel play i told you about. they have good blood lines. the stock will spike on the first day of trading but the overall business is too seasonal for me. it's like the inn i own which has traffic from kayak. i was checking in people yesterday. i don't carry bags. my back hurts. sometimes i say, hey, man, want me to carry your bag and he says yes and i say, you get it, it's too heavy. we are headed into the slowest part of the year for kayak but this is a good ipo trade as long as you ring the register quickly. last and definitely least and i'm not doing a the who thing and i won't throw it at the wall. but the last and least is fender. this is the kind of cool brand i

would love to recommend. the fundamentals just aren't there. that's all we care about. if you want fender exposure, i have an idea. listen to eric clapton, hendrix, get a stratocaster. don't buy the stock. what's wrong with it? the company is past its prime. in the first quarter sales increased 2.2% year over year. pathetic. operating margins declined. 57% of sales come from outside the u.s. this is an environment where domestic security is what we crave. 25% came from the black hole of europe. while the fender brand may be iconic it faces competition from gibson, yamaha, martin and from line six and marshall for amplifiers. my staff did some work on that. i'm not up on the fender world as i should be. i'm good on ketchup. fender is expected to price at between $13 and $15 so the stock

will begin trading at 26 times earnings. i'm sorry, that's too expensive for a company betting on international sales for a boost. the brokers are easy to entice home gamers like you into the market. under priced deals engineered for a quick pop. take advantage of the generosity in palo alto networks, five below and kayak, but only to get in on the deals. we don't like paying in the after market. of the four, five below could be a keeper. for the others ring the register when you can. for fender, i don't see any reason to bother with the slow growing guitar maker. owning shares of fender makes good water cooler conversation. frankly, i would rather make money than be cooler than i am now, although it would take more than owning fender to make that happen. stay with cramer.

is there any good economic news about europe away from germany? any sign that we may have a return to growth anywhere? no and no. the unchallenged conventional wisdom is there is nothing good

happening in any of these european countries other than germany and italy is about to implode after spain does. the decline in the euro has me thinking we won't always come in with nothing but negatives every day. when i returned from ireland i was astounded how expensive everything was despite a terrible decline in the real estate, housing foreclosures, prices down 60% from the peak but i couldn't find anything to buy. i thought things were overvalued versus the u.s. in areas that would have been stunning to buy including the west coast. why was that? simple. everything is priced in euros. at that time the euro was overvalued. 122 now, it's still not down enough to make me feel the values are there. if you get a substantial weakening in the euro without a weakening in the u.s. economy many european industrial businesses will benefit from the flip side of the strong dollar headwind we are suffering from. how will a weaker euro help? first, there are always people around the globe looking for

property. the weaker euro, i suspect these wealthy globe trotters will be eager to buy in ireland, spain or italy. they are great places. second, the tourist trade can have a remarkable impact on the economy. the very countries hurting the most are the same places americans love to visit and we are not alone. tourism can't be the be all and end all, but if europe is cheap enough, the influx of tourists can help immensely and almost immediately. the advantage of the u.s. and japan will diminish making it sell businesses in more lucrative and you buy them at a weaker currency. there are a ton of european exporters with a severe handicap versus the u.s. and japan because the euro is still too strong. easy to see how that could reverse to parity to the dollar. for once, we might have a bad news is good news situation across the atlantic. the weaker europe gets the less people want to hold euros.

the less people want euros the more we might want to vacation in europe, buy their land, use the equipment and get their services. it's not exactly a win, win. our own international companies in the u.s. lose out on business but the tourist trade can be gigantic and the foreign exchange advantage can be so demonstrable we could wake up to good economic numbers for a change. i'm not kidding. stick with cramer. [ female announcer ] the best things in life are the real things. nature valley trail mix bars are made with real ingredients you can see. like whole roasted nuts, chewy granola, and real fruit. nature valley trail mix bars. 100% natural. 100% delicious. m bara[romney singing]: oh beautiful, for spacious skies, approve this message.

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you need an ally. hello ? ally bank. no nonsense. just people sense. all right. like you, i was a bit surprised that marissa mayer was selected as the ceo of yahoo!. young, excellent reputation. i was a ross levinson fan. he's done a remarkable job. i think he would have been terrific, too. let's give this person a chance given the fact that she's worked at google for 13 years and google is the idol of the industry. there is a pretty good chance maybe she can get it right. the yahoo! brand remains pristine. full disclosure, cnbc and yahoo! have a deal. citigroup lost in the shuffle today. a terrific quarter.